CNOOC Ltd. said its parent China National Offshore Oil Corp. has signed a production sharing contract covering Block 05/31 in western Bohai with Smart Oil Investment Ltd.
The PSC calls for Smart Oil to shoot 3D seismic and drill exploratory wells at its sole expense. The block covers 270 sq km in 5-15 m of water at the junction of the Qikou sag and Nanpu sag.
CNOOC has the right to participate for as much as 51% working interest in any commercial discovery.